The Delhi Metro Project: Effective Project Management in the Indian Public Sector
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Case Code: PROM005 Case Length: 21 Pages Period: 1998-2006 Pub Date: 2006 Teaching Note: Not Available |
Price: Rs.400 Organization: DMRC Industry: Construction Countries: India Themes: Project Management |
Abstract Case Intro 1 Case Intro 2 Excerpts
Introduction
With a 6.5 km section of Line 3 becoming operational in April 2006, Phase I of the Delhi Metro project was nearing completion. Of the total length of 65.16 km of the first phase, 62 km had been completed and opened for service. This phase was set to cost Rs. 98 billion. As of early 2006, around 450,000 passengers were traveling by the Delhi Metro every day.
The Delhi Metro was meant to solve Delhi's traffic problems, which had become almost unmanageable. The first steps to build a metro system in the city were taken in the early 1990s. In 1995, the Government of India (GoI) and the Government of the National Capital Territory of Delhi (GNCTD) formed the Delhi Metro Rail Corporation Ltd (DMRC) under the Companies Act to construct the Delhi Metro.
Conceived as a social sector project, a significant portion of the project cost was funded through a soft loan provided by the Japanese government through Japan Bank International Corporation (JBIC). The rest was contributed by GoI and GNCTD through equity.
E.Sreedharan (Sreedharan) was appointed managing director (MD) of the DMRC and project manager for Phase I of the project in November 1997. Work on Line 1 of Phase I started in October 1998. DMRC formed consortiums to advise it on the project and to provide it with the latest technology. It also saw to it that the foreign companies worked with the Indian companies to ensure that the latter assimilated their expertise and technological know-how.
The DMRC faced any number of technical and systemic challenges during the construction of the metro.
However, thanks to thorough planning, an effective project design, and a 'we-mean business' culture, it was able to overcome all these hurdles. The organizational culture was based on punctuality, honesty, and a strict adherence to deadlines. The DMRC successfully managed the various stakeholders in the project like the general public, government bodies, etc., and also ensured that the project was environmentally safe.
With Phase I of the Delhi Metro project nearing completion, the GoI decided to extend the metro network and work on Phase II of the Delhi Metro project was set to commence in September 2006.
In the process of implementing the project, the DMRC had gained a lot of technological expertise, which would be used by other cities in India and abroad to build metro systems similar to the Delhi Metro.
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